How did the real estate market perform in 2011 in Sturbridge, Massachusetts? In 2011, we saw 69 single family home sales at an average price of $250,000. As the charts below show, the number of homes sold in 2011 was the lowest in the past decade; however, the average sale price stayed fairly stable.

For condominium sales, Sturbridge also saw some stabilization. Thirteen condos were sold in 2011, with an average sale price of $184,000. The number of units sold has remained similar to the past three years, with a fairly stable average sale price.

Data source for all graphs: MLS PIN

Influencing Factors

Several natural disasters in 2011 certainly had an effect on real estate sales in Sturbridge. Many citizens were focused on stabilization and recovery efforts following severe snow storms and a devastating tornado. Add in the general state of the economy and a continued distressed property market, and we saw a triple threat to property sales in Sturbridge this year.

Also remember that in early 2010 we had a home buyer tax credit, which created a short increase in activity and sale prices for that time period. We are now back to 2009 market prices.

Current Market and Predictions for 2012

As of this writing (January 8, 2012), the inventory in Sturbridge is low. There are currently 61 homes actively listed on the market. Of these, 8 have accepted offers but are accepting backup offers; 7 of these are priced lower than $250,000, and 5 are short sales.

Only one property is currently under contract, also a short sale.

There are 5 foreclosed homes currently active on the market.

Ten condominiums are active on the market; one of these is a foreclosed property. There are no condos with offers pending at this point.

For 2012, I predict a continued slow but stabilizing market in Sturbridge. Employment in this area is improving, and with that will come the consumer confidence needed to make people feel comfortable purchasing their own homes. Home sellers should prepare for having to continue to compete with low-priced distressed properties by getting their homes in top condition and setting realistic prices. Home buyers should prepare for strict lending rules by getting their financial affairs in spotless condition.

If you have questions about buying or selling property in the Sturbridge area, please do contact me. I am here to help you navigate the market as it moves toward recovery.

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